Wren, are you talking about this?
http://idea.ed.gov/explore/view/p/%2Croot%2Cstatute%2CI%2CD%2C681%2C
(d) Priorities.--The Secretary, in making an award of a grant, contract, or cooperative agreement under subpart 2 or 3, may, without regard to the rulemaking procedures under section 553 of title 5, United States Code, limit competitions to, or otherwise give priority to--
(1) projects that address 1 or more--
(A) age ranges;
(B) disabilities;
(C) school grades;
(D) types of educational placements or early intervention environments;
(E) types of services;
(F) content areas, such as reading; or
(G) effective strategies for helping children with disabilities learn appropriate behavior in the school and other community based educational settings;
(2) projects that address the needs of children based on the severity or incidence of their disability;
(3) projects that address the needs of--
(A) low achieving students;
(B) underserved populations;
(C) children from low income families;
(D) limited English proficient children;
(E) unserved and underserved areas;
(F) rural or urban areas;
(G) children whose behavior interferes with their learning and socialization;
(H) children with reading difficulties;
(I) children in public charter schools;
(J) children who are gifted and talented; or
(K) children with disabilities served by local educational agencies that receive payments under title VIII of the Elementary and Secondary Education Act of 1965;
(4) projects to reduce inappropriate identification of children as children with disabilities, particularly among minority children;
(5) projects that are carried out in particular areas of the country, to ensure broad geographic coverage;
(6) projects that promote the development and use of technologies with universal design, assistive technology devices, and assistive technology services to maximize children with disabilities' access to and participation in the general education curriculum; and
(7) any activity that is authorized in subpart 2 or 3.
This is part of Part D: NATIONAL ACTIVITIES TO IMPROVE EDUCATION OF CHILDREN WITH DISABILITIES. I don't think they're saying that gifted kids qualify for IEPs.